Practicing Success
What is withdrawals from the circular flow of income known as? |
Leakages Injections Additions Both 1 and 2 |
Leakages |
The correct answer is option 1 : Leakages Withdrawals from the circular flow of income are known as Leakages. These are funds that are taken out of the income flow, such as savings, taxes, and imports. In contrast, Injections refer to additions to the circular flow of income, such as investment, government spending, and exports. |